Trans World Entertainment Announces Launch Of F.Y.E. Download Zone

    * Company Unveils F.Y.E. Download Zone in Microsoft New Windows Media
      Player 10, Verified as Windows Media PlaysForSure Service

    * Digital Music Service Linking Online and In-Store Experience to Debut in
      Four Pilot F.Y.E. Stores in Coming Weeks

    * Largest Catalog of Digital Music Offered Online

    * Provides Breakthrough Portable Subscription Plans

ALBANY, N.Y., Oct. 12 /PRNewswire-FirstCall/ — Trans World Entertainment
Corporation (Nasdaq: TWMC), the nation’s largest specialty music retailer,
today announced the launch of F.Y.E. Download Zone, a digital subscription and
download music service accessible from within Microsoft’s Windows Media Player
10 and verified as a Windows Media PlaysForSure service. The launch marks the
Company’s first milestone for its online and in-store digital entertainment
experience, which is available at fye.com and will be followed by a pilot in 4
stores in the fourth quarter. In the future, the F.Y.E. Download Zone will
allow a seamless digital music discovery and shopping experience for Trans
World’s millions of customers and will be directly available within
Microsoft’s state-of- the-art Windows Media Player 10.

The F.Y.E. Download Zone offers one of the industry’s first ever portable
subscription services for users with portable devices that support Microsoft
Windows Media Digital Rights Management (DRM) 10. The portable subscription
service enables customers with compliant portable devices to choose from over
1 million tracks, made available by MusicNet, and take them on the go for a
monthly fee of only $14.99. Through Trans World’s patent-pending LVS
(Listening and Viewing Stations) systems, in-store customers will be able to
purchase digital tracks and send them directly to their home PC. “The F.Y.E.
Download Zone is setting a new standard in the digital music industry allowing
music consumers to shop for digital tracks directly within the Windows Media
Player 10 and will, over the coming months, extend the digital experience into
the in-store environment,” said Robert J. Higgins, Trans World’s Chairman and
Chief Executive Officer. “We are delighted to debut our digital music service
as a featured service within Microsoft Windows Media Player 10 as part of
Microsoft’s Experience More campaign.”

“With over 800 stores nationwide, Trans World is committed to being a
premier destination for entertainment media, and we are proud to join
Microsoft in offering a service fully integrated with Windows Media Player 10.
The Windows Media Player 10 platform provides a superior foundation for
launching our digital service and will enable us to meet our goal of offering
digital downloading in pilot stores this year,” added Mr. Higgins.

The F.Y.E. Download Zone relies on an easy to use and entertaining web-
based user interface provided by MusicNet, the world’s leading online music
service provider. Alan McGlade, CEO of MusicNet, commented: “The alliance
between Trans World, a top entertainment retailer, and MusicNet, the world’s
largest and most well known online music service provider, is a recipe for
success. With more than one million songs and original programming, the Trans
World digital music service will transform the way that consumers interact
with their music collection.”

The F.Y.E. Download Zone dramatically increases the functionality and
catalog available for F.Y.E. customers to sample and purchase the music they
want.

    * The F.Y.E. Download Zone service offers customers access to over 1
      million songs from the MusicNet catalog including tracks from all five
      majors and thousands of independent labels available for download to a
      customer's home PC, transfer to portable device, and burn to CD for just
      $0.99 a track.

    * Customers may access the service through the Windows Media Player 10
      Digital Media Mall and are eligible for a free trial subscription for
      unlimited access to the service.

    * Through Microsoft's technology, F.Y.E. Download Zone premium subscribers
      may transfer content at no additional charge to their Windows Media
      DRM10-compliant portable device for unlimited playback so long as they
      remain a subscriber for a monthly fee of $14.99.  For customers that
      prefer listening off their home PC, a basic subscription is available
      for $9.99 a month.

    * The service will also be offered via Trans World's website
      fye.com and in select stores later this year.

“Microsoft is pleased to support Trans World in bridging the digital
divide between the Windows XP based PCs and its retail storefront through the
F.Y.E. Download Zone now featured in Windows Media Player 10,” noted Chad
Hodge, group program manager in the Windows Digital Media Division at
Microsoft Corp. “We are pleased to add the F.Y.E. Download Zone and its
Windows Media DRM10-enabled subscription music service as an offering in
Windows Media Player 10, which in the future will bring the first portable
digital entertainment experience to the millions of customers who shop Trans
World’s retail stores each year.”

About Trans World Entertainment Corporation

Trans World Entertainment Corporation is a leading specialty retailer of
music and video products. The Company operates over 850 retail stores in 47
states, the District of Columbia, the U.S. Virgin Islands, Puerto Rico and e-
commerce sites, http://www.fye.com, http://www.coconuts.com ,
http://www.wherehouse.com, and http://www.secondspin.com. In addition to its
mall locations, operated primarily under the F.Y.E. brand, the Company also
operates freestanding locations under the names Coconuts Music and Movies,
Strawberries Music, Wherehouse, CD World, Spec’s and Planet Music.

About MusicNet

MusicNet is the world’s leading online music service provider. The top
U.S. and global consumer brands private label MusicNet’s comprehensive suite
of digital music services. MusicNet enables its partners to offer their
customers a fully customized experience, including the ability to buy music
downloads and subscriptions, choose from the industry’s largest catalog of
licensed music, explore engaging editorial programming and enjoy an easy-to-
use interface. Headquartered in New York, MusicNet’s shareholders include
Bertelsmann AG, EMI Music, RealNetworks, Sony Music Entertainment and Time
Warner, Inc.

All product and company names herein may be trademarks of their respective
owners.

SOURCE  Trans World Entertainment
    -0-                             10/12/2004
    /CONTACT:  Rich Tauberman, MWW Group, +1-201-507-9500, ,
for Trans World Entertainment /
    /Web site:  http://www.twec.com
                http://www.fye.com /
    (TWMC)

CO:  Trans World Entertainment
ST:  New York
IN:  MUS ENT REA ITE MLM CPR
SU:  PDT

DW 
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